On Monday we reported that a Sony PS3 hack was accomplished by GeoHot. What George managed to do was get the security keys which are needed to keep the device secure. With the keys being publicly available, it basically allows unverified software to be signed and run on the games console.
What we hear today is that the PS3 custom firmware has now been released. The firmware was created by KaKaRoTo and essentially, seems to show that it is possible to run custom firmware.
This is just the first attempt at custom firmware, and it only contains a minor modification to allow you to install pkg files directly, eventually we’ll get some more options added to it in the future. This is just starting to get interesting!